So why a redesign and rebrand?

An IRA can be a great tool to help you save for retirement and the traditional and Roth both have interesting tax advantages. But the amount you can contribute every year is limited. The Federal government imposes limits as to how much money can be contributed to both the Roth IRA and the traditional IRA accounts. An account holder’s age (and income) is also a factor in how much s/he can contribute per year.

The investors who are 49 years old or younger have had maximum limits that are $1,000 less that those investors who are 50 years old or older since the 2006-2007 investment year.

The nature of this investment fund demands that an investor contributes the maximum amount of contribution allowed every year in order to enjoy maximum yield. For example, the contribution amount for a person 49 years of age or younger in 2010 was $5,000. If he only invests $3,000 in 2010 he can’t add the $2,000 deficit to the $5,000 contribution allowed in 2011. The IRA is a “use it or lose it” investment fund which means any money not invested into an IRA is lost forever.Continue Reading

Why Betterment?

A little while back the S.E.C. recommended that stock brokers be required to act as fiduciaries. This would mean they would have to act in the best interest of their customers. The New York Times reviewed the salient issues on their Bucks Blog.

We think this is a no-brainer: OF COURSE brokers should act in the best interest of their customers – and they should be legally liable if they do not.Continue Reading

One of the ways you can improve your financial stability and freedom is by cultivating income diversity. Income diversity means that, rather than relying on a single source of income, you actually develop different income streams. One way that you can increase your income streams is through income investing.

Income Investing: The Basics

Prosper.com is a personal loan and investing site with over one million members and over two hundred fifteen million dollars in personal loans funded since 2006. Using a unique person to person lending model, prosper.com connects borrowers and lenders and allows them to establish a mutually beneficial financial relationship. Prosper offers borrowers rates as low as 5.9% and lender returns as high as 10.1% (this varies, of course based on your borrowing and lending situation).

Disclaimer

Free From Broke is for general information or entertainment purposes only and does not constitute professional financial advice. Be smart and do your own research or contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.